Hampton Roads real estate projects reaches slowdown

In 2005, the Isle of Wight County Board of Supervisors approved the 430-home St. Luke's Village.

Five years later, the first home has yet to be built.

Such is the case across Hampton Roads, as projects approved during the height of the real estate boom have languished in the ensuing slowdown.

Hampton Roads saw hundreds of new homes go up during the real estate boom in the middle of the decade, but demand trailed off in the midst of a real estate slowdown.

Recognizing the tough spot developers are in, the General Assembly last year passed a law granting developers more time to complete their projects….

Sometimes, cities and counties call for developers to make progress on developments or face WHAT? Sanctions?. But developments on the books as of Jan. 1, 2009, have been given a pass until July 1, 2014, according to a new law passed by the General Assembly last year.

Here's a look at where development stands in major projects on the Peninsula, Middle Peninsula and Isle of Wight:

In Isle of Wight, though the residential component of St. Luke's Village has come to a standstill, a medical component of the project has come to fruition. The developer sold a chunk of the land to Sentara Healthcare, which built and opened the Sentara St. Luke's medical building. Adding the medical building pared the number of homes to 254.

Work continues in the 1,200-home Eagle Harbor project, which broke ground in 2001, and in Founder's Pointe, the site of Tidewater Builders Association Homearama through May 23.

Construction has been slow at Lawnes Point on the James, a development of 155 lots, and hasn't begun at the 560-home Benn's Grant project approved last year.

In James City County,

In Newport News, developers have renewed plans to build Huntington Pointe, a neighborhood of 2,550 homes, townhomes and apartment units that was approved in 2008. Development is ongoing at Windy Knolls, a community of about 300 condos and apartments, but work has slowed at Patrick Henry Place, a development off Jefferson Avenue behind the Interstate 64 interchange. It was approved for 600 townhomes and apartment units.

And nearly 1,600-home Asheton is off the table. Since the project was approved in 2006, the developer, L.M. Sandler & Sons of Virginia Beach, has fallen into financial trouble, including seeing some projects succumb to foreclosure.

"With the Sandlers going through some of their financial workouts in other projects, we are from a policy standpoint going to be addressing that over the next few months," said Florence Kingston, Newport News development director.

The city will consider whether it would terminate the development agreement with the company. The city's Economic Development Authority owns the land.

"I would not see that project happening on the horizon," she said.

In Hampton,

In Gloucester, building permits have been issued for 406 of 758 homes approved since 2000, according to planning department documents.